Paper Economy (Global Crisis The World)

Nama : Winda Puspita Lim Setyawati
NPM : 21207169
Kelas : 3 EB14
Materi : Paper Economy (Global Crisis The World)
Dosen : Muhammad Kholiq

Global Crisis The World

This paper proposes the uses of the global economic crisis smash effect simulation theoretical framework to evaluate the final effects of the global financial crisis o the world economy. We present different scenarios and results according to different levels of devastation that the global financial crisis can generate on the world economy. It is based on the evaluation of the unemployment and the world wide poverty dissemination. We suggest the application of economic modeling to visualize differnt scenarios and the final impact of the global financial crisis.

Global crisis has become the world's complication. It began with the problem criginated from the subprime mortgage in USA in the middle of 2007. The situation was deteriorated by the financial crisis in September 2008 1). Although the crisis started and mainly occurs in the US, it has sufficiently affected economies both in Europe and Asia. Even country with considerably strong economy in Asia such as Japan was also economically wounded by the spread of the crisis. In September 2008,Japan's surplus from international trading declined 48.8 percent from the previous year 2). The crisis also affected, eventhought not as sufficient as Japan, newly industrialized countries in Asian region like Hongkong, Korea and Singapore. Averagely, those three economies declined at rates between 10 percent and 25 percent. It happenned as a result of the demand reduction for consumer goods and capital goods 3). The crisis also gave impact to the employment. In Indonesia, about three thousands of Indonesian worker, coming from Sumatera Utra, were sent home from Malaysia 4). As a result of a declining of manufacturing activitics as the country is also suffering from the global crisis. Further, it is reported, also in Indonesia, that the number of unemployment in national level, contributed by the global crisis, reaches around 51.000 - 57.000 of people 5). Another sector thatis also crucial for one country economy is investment. For many economies, specially those in developing countries, investment plays as an important supports productivity which is the center part of an economic. Therefore, maintaining a good-level of investment, while global crisis is imposibly avoided, is something that should be given a serious attention.
Law as one of the tools for development has being utilized to regulate many sectors n development, including investment. Law is also expected, althoughin in man cas is not always succeeded, to be able to accommodate the keep changing situation of the human life. In the context of the global crisis and investment, law does have a chance to take part in the effort to maintain a good-level of investment.
This Seminar is aimed of accommodating as well as exploring ways, means, ideas and aspiration from both academicians and practitioners concerning the approach of investment 1 " The global economy is an unfolding narrative as opposed to a finite position. The economy is not a static instrument and there have had to be assumptions made and some modelling done but the economic picture has been consta

1. The current crisis is multidimensional and diverse. No crisis is gender neutral. Something we focus more on the short term impacts of the crisis, but there are also longer term impacts, and this may be an oppotunity for us to effect the structural framework.
2. Very little has been written on gender effects of crisis. There are three major impacts. The first are economic impacts, such as unemployment domestically and abroad, and this also includes the problem of return migrants and remittances. In some cases things are not clear, when women are in low-wage sectors and their job losses may not be as rapid as that of men.
3. The second set of impacts are related to human development. In the case of crisis, women and girls bear the brunt of the crisis first. Girls must drop out of school first, get health care second. There is also disparity in food consumptions and nutrition.
4. The third set of impacts are related to care work and the care economy. As women have to come out of the home to seek jobs, households lose primary caregivers. Human development impacts are seen with a time lag.
5. There are also a set of impacts specific to women. The whole issueof domestic violence becomes an issue. There also may be increasing trafficking and prostitution of women.
6. What perspective to take with respect to the economic crisis? First should be the human development perspective. It is nutrition, life expectancy and educational achievements which form the basis of society and policy to respond to the global crisis.

Economic Sectors
Main article : Economic Sectors

The Economy includes several sectors (also called industries), that evolved in successive phases.

• The ancient economy was mainly based on subsistence farming.
• The industrial revolution lessened the role of subsistence farming, converting it to more extensive and monocultural forms of agriculture in the last three centuries. The economic growth took place mostly in mining, construction and manufacturing industries.
• In the economies of modern consumer societies there is a growing part played by services, finance and technology-the (knowledge economy).

In modern economies, there are four main sectors of economic activity :

• Primary sector of the economy : Involves the extraction and production of raw materials, such as corn, coal, wood and iron. (A coal miner and a fisherman would be workers in the primary sector).
• Secondary sector of the economy : Involves the transformation of raw or intermediate materials into goods e.g. manufacturing steel into cars, or textiles into clothing. (A builder and a dressmaker would be workers in the secondary sector).
• Tertiary sector of the economy : Involves the provision of services to consumers and businesses, such as baby sitting, cinema and banking. (A shopkeeper and an accountant would be workers in the tertiary sector).
• Quaternary sector of the economy : Involves the research and development needed to produce products from natural resources. (A logging company might research ways to use partially burnt wood to be processed so that the undamaged portions of it can be made into pulp for paper).